Massachusetts Orders LPL to Pay $3.7 Million in Relief for Older InvestorsMassachusetts Orders LPL to Pay $3.7 Million in Relief for Older Investors

BOSTON, Jan 30 (Reuters) - Massachusetts' top securitiesregulator said on Monday he ordered LPL Financial Holdings Inc to offer about $2.5 million in restitution to olderinvestors over the sale of unsuitable insurance products.

The order also fines LPL $975,000 and requires disgorgementof $208,000 in commissions on the sales.

The order from Secretary of the Commonwealth William Gavinsaid one of LPL's advisers misrepresented clients' ages and networth to make them appear more suitable for buying variableannuity investments. LPL also failed to detect various red flagsand discrepancies which should would have prevented the harm,according to a statement from Galvin's office.

"With the risk of the Department of Labor's Fiduciary rulebeing dismantled, it is crucial that the states step in to fillthis void," Galvin said. "The Securities Division and I intendto do that by vigilantly policing this area to protect retirees,and I would also caution Washington not to dismantle Labor'srule and abandon mom and pop investors."

On the campaign trail, U.S. President Donald Trump had saidthat "70 percent of regulations can go," and one of his topadvisers, Anthony Scaramucci, told Reuters the fiduciary rule"would likely be stopped." (Reporting By Tim McLaughlin; Editing by Meredith Mazzilli)